Personal loans, also known as unsecured signature loans, require no collateral. They can be used for many reasons and are often more flexible than other types of loans. A range of loan amounts and terms are available. Read on to see if a Cobalt Credit Union personal loan is right for you.
How a Personal Loan Works
When you apply for a personal loan, you may be asked to specify the purpose of the loan to make sure that it conforms to our lending requirements. For example, other loans such as student loans or mortgages are for specific purposes. You must abide by the terms of use for those loans. With a credit union personal loan, no collateral is required and you have more freedom to use the loan for a variety of purposes. Sometimes a personal loan is referred to as an unsecured signature loan which means no collateral is needed.
Personal loans can be used for many things including:
- Debt consolidation of other loans or credit cards
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Emergency expenses
- Home renovations
- Major life events like a wedding
- Even a special vacation
To learn more, read our blog on Personal Loans 101
How to Apply for a Personal Loan
Applying for a personal loan requires running a credit report and getting your credit score. If you want to find out more about credit scores, visit our blog Credit Scores: A Digital Finger on Your Financial Pulse.
Loans are subject to credit approval and your ability to repay. Your interest rate for the loan will be determined upon term, loan-to-value ratio, and credit score.
Cobalt Credit Union also offers a debt protection plan with your personal loan in the event of death, disability or involuntary unemployment. Contact a Cobalt representative for more details.
Personal Loan Amounts and Terms
Personal loan amounts are available from $1,000 to $30,000. Available terms include 1 year loans to 5 year loans and we don’t charge a fee if you pay off your loan early. So there are no prepayment penalties if you decide to pay off your loan faster than your payment schedule which saves you interest in the long run.
To learn more about loans and other money management topics, visit our Financial Education page.
